The Kenya Revenue Authority (KRA) has proposed new income tax exemption rules for persons with disabilities (PWDs) and their caregivers. The draft regulations, published for public consultation on November 9, 2026, outline the assessment process, required documentation, and potential income exemptions. This development affects approximately 0.9 million Kenyans with disabilities, representing 2.2% of the population. The Persons with Disabilities Act, 2025, governs the rights and support for PWDs in Kenya.
The existing monthly income exemption of Sh150,000 for eligible PWDs is set for review under the new regulations. This exemption, equivalent to Sh1.8 million annually, is not new but is part of the Persons with Disabilities (Income Tax Deductions and Exemptions) Order, 2010. The proposed rules aim to replace this framework with more detailed eligibility and assessment procedures, linking relief to the severity of an applicant's disability. The draft schedule uses disability assessments based on the International Classification of Functioning, Disability and Health (ICF) framework.
Under the proposed schedule, the exemption varies according to the type and severity of impairment. Moderate levels of specified visual, speech, communication, and intellectual impairments generally attract 30% of the exemption ceiling, while severe levels attract 60%. Blindness, profound hearing impairment, and specified complete or very severe conditions may qualify for the full 100% exemption. For physical disabilities, percentage-based assessments determine the portion of the Sh150,000 exemption ceiling an applicant may qualify for.
A separate application route is introduced for parents or guardians providing full care and custody to a person certified as having a severe disability. Applicants must provide the dependant's National Council for Persons with Disabilities (NCPWD) registration details, proof of relationship, evidence of care and custody, and information demonstrating they receive income. A non-refundable KSh1,000 processing fee is required for guardian applications. This exemption is separate from the existing PWD income exemption.
To apply, PWDs must provide evidence of NCPWD registration, identification documents, a valid Tax Compliance Certificate, medical assessment reports from a government health facility, and proof of income. Employed applicants may also need to provide an employer's letter explaining the nature of the disability and its effect on their work. Applications will be reviewed through the NCPWD assessment and committee process before a recommendation is sent to the KRA Commissioner for a decision.
The proposed framework provides for a decision within 30 days after the committee's recommendation. Exemption certificates would generally remain valid for five years, subject to renewal and reassessment where required. The draft regulations propose revoking the 2010 order when the new framework comes into force, with transitional provisions for existing exemption certificates.
KRA is inviting public comments on the draft regulations until November 24, 2026. The proposed rules are not yet law, and applicants should continue following existing exemption procedures until the regulations are formally gazetted. Comments can be submitted to KRA through its published stakeholder-engagement channel before the consultation deadline.
Key points
- The proposed regulations introduce severity-based assessments for disability exemptions.
- A separate application route is created for parents and guardians of severely disabled dependants.
- The exemption certificates would generally remain valid for five years, subject to renewal and reassessment.
